4 firms bag bulk of P1.3-billion projects

MANILA, Philippines - Four contractors cornered the bulk of river dredging projects worth P1.3 billion, which were undertaken shortly before the synchronized national and local elections last May 10.

The projects were funded through so-called “congressional initiatives,” the euphemism for budgetary insertions made by congressmen.

The P1.3 billion is part of the P16.5 billion in budgetary insertions, which then President Gloria Macapagal-Arroyo released before and after the elections mostly to her allies in the House of Representatives.

Documents show that of the 15 river dredging projects worth P370 million in the lone district of Romblon, the Department of Public Works and Highways (DPWH) awarded 10 of them, amounting to P255 million, to Antonio V. Nidea Construction Inc.

The DPWH gave four contracts costing P25 million each, for a total of P100 million, to Sunwest Construction and Development Corp., while the remaining project worth P15 million was awarded to Legazpi Premium Development Corp.

In the first legislative district of Albay, DSB Construction and Supply Inc. was awarded 10 projects worth P58 million, while Hi-Tone Construction and Development Corp. was given two contracts that cost P20 million each.

A P20-million contract in Albay’s second district also went to Antonio V. Nidea Construction, while Hi-Tone bagged all four deals worth P90 million in the province’s third congressional district as well as all four contracts costing P80 million in the lone district of Catanduanes.

Hi-Tone also won four projects worth P63 million in the lone district of Antique, while three other river clearing works in the province costing P62 million went to Sunwest Construction and Development Corp.

In the lone district of Biliran, two contracts for P20 million each were awarded to Yoyen Enterprises, while four others costing a total of P80 million were given to Three W Builders Inc.

Three W Builders also bagged all eight contracts worth P160 million in Leyte.

Of these projects, six worth P110 million were in the first district, one costing P40 million was undertaken in the second district, and one worth P10 million in the fourth district.

In the first district of Agusan del Norte, Tri-Parco Development Corp. cornered all four projects costing P20 million each, for a total of P80 million.

In all, Antonio V. Nidea Construction was awarded P275 million worth of river clearing works; Hi-Tone, P273 million; Three W Builders, P240 million; Sunwest, P162 million; and Tri-Parco, P80 million.

The funds for the river dredging projects were supposed to be the “initiatives” of congressmen - Eleandro Jesus Madrona of Romblon; Edcel Lagman, Al Francis Bichara and Reno Lim of the first, second and third districts of Albay, respectively; Joseph Santiago of Catanduanes; Exequiel Javier of Antique; Glenn Chong of Biliran; and Martin Romualdez, Trinidad Apostol and Eufrocino Codilla Sr. of the first, second and fourth districts of Leyte, respectively.

Mrs. Arroyo, now a congresswoman representing Pampanga’s second district, released the funds to her allies’ districts on Feb. 18.

That same month, just a few days after the release of the funds, the DPWH awarded the projects to the contractors.

The river dredging funds were on top of billions the former president disbursed for road and bridge construction or improvement works. Albay was the biggest recipient, getting more than P1 billion. Legazpi City alone received more than P600 million. The city is in Bichara’s district.

It is likely that the construction companies which were given hundreds of millions worth of river clearing projects also bagged hundreds of millions more in road and bridge construction or rehabilitation contracts.

It is said that one company cornered more than P2 billion in road projects in Mindanao.

The P16.5 billion that Mrs. Arroyo released before and after the May 10 elections is part of the P65 billion in debt payments programmed for this year and which senators and congressmen diverted to their pork barrel.

Budget Secretary Florencio Abad said the releases are now a “big burden on the government’s fiscal position for the latter half of this year.”